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18 PalletCentral • November-December 2022 palletcentral.com Inflation will continue well into 2023. It is our opinion that the Federal Reserve was late in taming the growing inflation and will have to continue to increase interest rates and tightening monetary policy which could mean stagflation. Due to worsening economic activity, the supply chain may have more time to correct itself and may see an improvement. Just because economic distress is occurring not everything is bad, which is why we may see that the supply chain will improve as demand decreases. If we experience stagflation, you will see unemployment rise and those that are looking for more workers may find them. With a divided Congress beginning in 2023, Freedom Sourcing is hopeful that with such tight margins between the two parties, Congress will be forced to see more reaching across the aisle and both parties working together to accomplish better legislation and maybe find a solution for a shortage in the labor force. Our recommendation is the old saying, "hope for the best, brace for the worst." Fortunately, Freedom Sourcing has a tremendous organization behind us like the NWPCA that unites and fights for our economic well-being. John Lieber PRESIDENT PROFILE TECHNOLOGY e stock market took a real hit but has recently gained some momentum and has plateaued over the past 18 months, regaining about half of its losses. e current growth of the economy should continue, but it will be at the grassroots level, one company at a time. e supply chain appears to be flattening out and becoming more predictable. is trend should continue through 2023, helping businesses to increase production efficiency. Despite fuel increases and driver shortages, among other issues, data shows there was a 25% growth in truck freight tonnage in 2022. We project an additional 25-30% increase in truck freight tonnage for 2023 while dealing with the same challenges. at said, businesses will continue to adjust, and I predict a slow and steady recovery. With growth in the business climate, there will be increased demand for goods and services, trickling down to continued demand for wooden pallets, which parallels our prediction for growth in truck freight tonnage for next year. Pallet manufacturers and recyclers will find more ways to automate to reduce costs and maintain and increase production more smoothly and efficiently. e bottom line is, assuming national and world politics do not cause significant disruptions in the world economy, the wood pallet industry will continue to grow through 2023, fighting the same problems and concerns they have dealt with in 2022. Mike Hachtman CEO 48FORTY SOLUTIONS A continued robust job market along with strong Black Friday and record Cyber Monday sales are an encouraging sign for the U.S. economy. Unfortunately, strong headwinds may cause an economic hangover in early 2023. American consumers continue to spend but this could slow as they deplete record savings built over the pandemic. Retailers' sales are strong, but they will continue to sell down excess inventories through the first half of 2023. e Federal Reserve continues to raise interest rates, negatively impacting the housing and auto markets. e combined impact of all of these factors could result in a slowdown in the first half of 2023. e good news? Any slowdown will ease lingering supply chain challenges, bring inflation under control and a softer job market will make workers easier to find and slightly more affordable. Unfortunately, higher unemployment would be a challenge for many Americans. e foundations of our economy remain strong and the second half of 2023 will improve. While pallet demand may soften in the near term and consumers may seek value purchasing a five-pound bag of potatoes instead of the more expensive, individual russet potatoes, they are both shipped on pallets! The supply chain appears to be flattening out and becoming more predictable. This trend should continue through 2023, helping businesses to increase production efficiency. – John Lieber, President, Profile Technology

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